<h2> Dril-Quip second quarter results exceed expectations</h2>
Dril-Quip, Inc. (NYSE: DRQ) today announced net income of US$39.2 million, or US$1.01 per diluted share, for the three months ended June 30, 2015, versus net income of US$51.3 million, or US$1.27 per diluted share, for the second quarter of 2014. The second quarter 2015 results were unfavorably impacted by an after-tax foreign exchange loss of US$8.8 million, or US$0.23 per diluted share, as compared to an after-tax foreign exchange loss of US$1.5 million, or US$0.04 per diluted share, during the second quarter of 2014. Total revenues were US$215.3 million during the quarter ended June 30, 2015 compared to US$230.3 million for the same period in 2014.
Blake DeBerry, Dril-Quip's President and CEO, stated, "We are pleased with our second quarter 2015 operating results as the execution of our backlog resulted in gross margins that exceeded our expectations. While recent oil price declines have increased uncertainties regarding bookings levels, we are encouraged by recent increases in quotation activity."
For the six months ended June 30, 2015, net income was US$92.9 million, or US$2.39 per diluted share, compared with net income of $93.9 million, or US$2.31 per diluted share, for the same period in 2014. The results for the first six months of 2015 were also negatively impacted by an after-tax foreign exchange loss of US$4.0 million, or US$0.10 per diluted share, as compared to an after-tax foreign exchange loss of US$2.2 million, or US$0.05 per diluted share, during the first half of 2014. Total revenues rose to US$441.3 million during the six months ended June 30, 2015 from US$434.4 million during the same period in 2014.
In addition, the Company announced that its backlog at June 30, 2015 was approximately US$1.0 billion, compared to its June 30, 2014 backlog of approximately US$1.3 billion and its March 31, 2015 backlog of approximately US$1.1 billion. Based upon current market conditions and excluding foreign currency gains/losses or any unusual items, the Company expects its earnings per diluted share for the quarter ending September 30, 2015 to approximate US$1.10 to US$1.20 per share. The Company also reaffirmed that it currently expects its full-year 2015 earnings per diluted share to be in the range of US$4.60 to US$4.80, excluding foreign currency gains/losses or any unusual items.
Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment which is well suited for use in deepwater, harsh environment and severe service applications.
Statements contained herein relating to future operations and financial results that are forward-looking statements are based upon certain assumptions and analyses made by the management of the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors. These statements are subject to risks beyond the Company's control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, project terminations, suspensions or scope adjustments, uncertainties regarding the effects of new governmental regulations, the Company's international operations, operating risks, and other factors detailed in the Company's public filings with the Securities and Exchange Commission. Investors are cautioned that any such statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.
Adapted from a press release by Louise Mulhall